Silver Arrow Capital targets Rofin-Sinar
Rofin-Sinar shoots back at activist investor Silver Arrow Capital, after a letter accusing the industrial laser company’s board of myriad failings.
Silver Arrow took public its accusation, noting that Rofin has been underperforming the wider laser market as a result of the strategic and operational decisions made by the current board of directors, including a late entry to the fiber laser sub-sector.
Silver Arrow owns 9% of Rofin. The current board of directors has overseen various failures as a result of “misguided strategy, poor board oversight and ineffective management”.
Hence, Rofin’s stock price is trading at a discount to its peer group and is losing market share. It's burdened with corporate inefficiencies, has missed out on growth opportunities and has not properly deployed capital. Rofin also has a long-tenured board (15 year average) that lacks the true independence needed to serve the interests of its stockholders.
Central to that recent improvement has been the recent release of new and more efficient fiber laser pump modules and multi-kilowatt systems that the company believes will enable it to compete more effectively in the industrial market with fiber laser specialist IPG Photonics.
Rofin is battling the likes of IPG Photonics, Lumentum, Coherent and nLight. Rofin would be able to compete more effectively if a number of changes were made, including the personnel at company director level. New directors are needed to help refocus Rofin and add fresh perspectives with a greater focus on stockholder accountability.